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Fall Outlook: Presidential Race and Congressional Issues

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The “summer of Trump” has come to a close, so now we will see whether or not “the Donald” can continue his dominance of the GOP presidential field into the fall. He continues to poll well with a commanding lead over everyone else, but there are more debates coming and he has shown some difficulty in responding to questions of policy, especially on foreign affairs issues. Style-over-substance only carries a candidate so far before he or she must show some ability to tackle the issues. Look what happened to 2012 front-runner Rick Perry when he couldn’t remember the name of one federal agency. I suspect the mortar fire will increase on Donald Trump during the next debate as the other candidates all recognize they have to bring him down to have any chance of winning. Also watch the performance of Carly Fiorina who was the winner of the first “happy hour” debate. Now that CNN has refined its selected process for the debates, Carly Fiorina gets to participate in the prime time contest.

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October 2017

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It’s October and I can’t believe that there are only 86 shopping days left until Christmas. Of course, this does not include Hanukkah, Kwanzaa or other forms of holiday celebration. In the end, I love all the holidays—from Halloween to Thanks - giving to Christmas. Whether it is created by Hallmark Cards, made up to celebrate chocolate, our Administrative Assistants, grandparents, etc., I find joy in the celebration and reminder that there are so many things to be grateful for and that we should not take anything for granted. So enjoy the beginning of Fall and all the upcoming holidays.

Now on to some more pressing news. An update this month:

  • At the direction of the Los Angeles County Supervisors, staff have not yet returned with their report on Tenant Protections. Until this happens, a workgroup will not be able to be formed. Will keep you advised of any progress.
  • Legislature is on holiday recess until the first of the year. At this writing, the Governor still has an opportunity to sign bills and veto, so we will update you on this next month.
  • Tenant rights groups are beginning to protest at our Management Companies. Be aware as they may come anytime and are wearing black masks (that may change as well). These groups are hosting community training sessions to teach them how to be a community rights advocate.
  • Rent Control continues to ramp up and while things appear to be relatively quite right now, we also know that there is a continued push to take this Statewide.


At the Association, I need to give a BIG THANK YOU to the AACSC staff for making the Trade Show a GREAT success this year. Jeannie helped us up the ante on the look, Tom brought us over 30 NEW vendors. Our Board Members really stepped up and helped us meet and greet members, en courage new members to join us in our fight against Rent Control, and our PAC Trustees shared with everyone who came by about the value and benefit of contributing to the PAC. Sophia, Donna, Rachael, Oliver and Terri did everything else in our AACSC booth and as usual we enjoyed seeing all of you!

Plans for the Future

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Late summer and early fall are typically busy times for us landlords. When you’re busy building your rental business or maintaining a smooth running business, it doesn’t give you a lot of time to think about the future. For those of us who have spent their working careers doing what we do and are at the point of finally being able to slow down a little, either because of retiring out of the business or turning over day-to-day management to our children or property manager, you have the luxury of reducing your stress levels and thinking about the future.

The future and how you can support the industry that sup ported you and your family is what I’d like to talk to you about. To the point, I want you to consider AACSC in your estate planning. As we go through life, we are supported in a number of ways. We get support from family, church, close friends and schools to name a few. Many of us also try to help the less fortunate through charitable giving.

If you worked for a major company like Boeing or GE, you’d probably never think about adding them to your list of beneficiaries and donating to them after you retire. When you are in our business, organizations like AACSC work tirelessly to help you succeed in your real estate business asking nothing in return—no share of your monthly income or profits from a property sale. You send AACSC dues that are used to provide you with services or to fight legislative battles for your benefit. That fight is ongoing. AACSC has been around for over 90 years.

AACSC has been helping landlords long before any of us got into the business and will be doing the same long after we’re gone. If you decide to leave your property to your children, to the church or to anyone your care about, they will be the ones needing AACSC’s help. AACSC could really use your help. Your beneficiaries managing your property will need our help. Can we count on you?

Proposed Regulation on Applicant Inquiries

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On January 17, 2017, the Department of Fair Employment and Housing Council will consider adopting new regulations regarding the discriminatory effect, discriminatory land use practice and use of criminal history information when renting residential real property.

If that has not gotten your attention, then consider the impact of the following regulatory proposal:

“Any Practice of a Person or Owner that includes the use of, inquiries about, or solicitation of information about criminal history is unlawful if it has a discriminatory effect under Article 5 and Government Code section 12955.8.”

The proposed regulation may bar property owners and managers from inquiring about an applicant’s criminal history. If that language does not get your attention, then consider the next three proposed regulations:

  1. “A notice, advertisement, application, or other written or oral statement regarding criminal history or criminal records that conflicts with the provisions of this Article and Article 5 shall be a violation of the Act.”
  2. “Overbroad or arbitrary inquiries into or use of criminal history information in housing may have a discriminatory effect on members of Protected Classes. A discriminatory effect may be established through the use of conviction statistics or by any other evidence (emphasis added) that establishes a discriminatory effect.”
  3. “State or national level statistics showing substantial disparities in the conviction records of individuals based on membership in a Protected Class are presumptively sufficient to establish a discriminatory effect of a Practice under Article 5.”


Property owners and managers will find that they may never be able to consider an applicant’s history. The regulations try to mitigate the above mentioned regulations by permitting a property owner or manager to make inquiries of the applicant if certain prongs of a legally sufficient justification are met. To do that, the property owner and manager must:

  1. “Identify a specific substantial, legitimate, nondiscriminatory interest to support the Practice, such as a risk to the safety of its residents.” Owners cannot predict the future.
  2. “Take into account the nature and severity of an individual’s conviction and the amount of time that has passed since the criminal conduct occurred.” Property owners big and small will be required to hire experts to make recommendations regarding each applicant.
  3. “Limit consideration to convictions that are directly related to the individual’s capacity and likelihood of fulfilling the obligations related to the housing or services” (conviction of a burglary versus an alcohol related offense). Once again, property owners will find it extremely difficult to meet this burden.
  4. “Prove that its Practice actually achieves the identified interest, which includes proving that its Practice accurately distinguishes between criminal conduct that poses a demonstrable risk to its proffered interest and criminal conduct.” The shift of the burden of proof is squarely on the property owner and manager which this also forces quantifiable proof by each owner and manager for each applicant to rent real property.


To make sure that we understand the totality of the proposed regulations, the following should be of great concern: “Practices with a Discriminatory Effect [that are] Prohibited … A Practice [that] has a discriminatory effect where it actually or predictably results in a disparate impact on an individual or group of individuals or creates, increases, reinforces, or perpetuates segregated housing patterns because of membership in a Protected Class.”

The language applies to every decision a property owner makes regarding the rental of real property.

Yes, of course, this may challenge the decision in Harris v Capitol Growth Investors XIV (1991) 52 Cal.3d 1142, 278 Cal.Rptr. 614; 805 P.2d.873 regarding economic discrimination which held in pertinent part that property owners and managers can set reasonable credit standards.

This is just one of several DFEH Council proposedregulations. Are you interested in finding the outcome?If so, we hope you join the Association orremain an active member.

Free Federal and State Compliant Labor Law Posters to AACSC Members

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Free Federal and State Compliant Labor Law Posters to AACSC Members

Some of the statutes and regulations enforced by agencies within the Department of Labor require that posters or notices be posted in the workplace. Failure to post required state and federal employment law notices can result in fines up to $17,000.  As regulations change often (in California minimum wage goes to $10.00 per hour effective January 1, 2016) it is good practice to update your posters annually.  This requirement affects every employer, regardless of size.

AACSC is making Federal and State compliant labor law posters available free of charge to members.  Please email This e-mail address is being protected from spambots. You need JavaScript enabled to view it and indicate the number of posters your business will need.  Your request will be fulfilled by Colony-West Financial Insurance.  Contact George O'Hara at Colony-West at (714) 476-3934 with questions.

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333 W. Broadway St., Suite 101
Long Beach, CA 90802
(562) 426-8341

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